Cryptocurrency analyst Ali Martinez spotlighted a prolonged lull in institutional buying pressure for Bitcoin (CRYPTO: BTC) as the apex cryptocurrency hit a 20-month low on Wednesday.
Institutional Demand Dries Up
Martinez pointed to the 46-day negative streak in the Coinbase Premium Index, a CryptoQuant metric that measures the price gap of Bitcoin between Coinbase and offshore exchanges. It is a widely used barometer for U.S. institutional demand and overall market sentiment.
“A negative premium means BTC is trading cheaper on Coinbase, suggesting that U.S. institutional buying pressure has dried up,” the analyst stated.
Martinez also highlighted the “cooling period” in spot exchange-traded fund flows. The Bitcoin ETFs have experienced six consecutive weeks of net outflows, according to data from SoSo Value, with $2.92 billion in redemptions this month alone.
“American smart money appears to be sitting on the sidelines, waiting for macroeconomic clarity before re-entering the accumulation phase,” Martinez added.
Is Bitcoin Headed Below $30,000?
Bitcoin plunged below $60,000 on Wednesday—its first time since October 24—as the ongoing sell-off pushed the leading cryptocurrency more than 51% below its record high of $126,198.
The odds of Bitcoin falling below $30,000 in 2026 stood at 14% on Polymarket, while the chances of the asset sliding below $50,000 rose to 62%.
Does Crypto Need A New Narrative?
Bitcoin’s downfall has had a cascading effect on the broader market. Market commentator Kobeissi Letter noted how the cryptocurrency market capitalization has collapsed by more than 50% in just 8 months.
“Crypto markets have erased an average of -$8.8 billion per day for 261 days straight,” Kobeissi Letter said. “Crypto is in desperate need of a new narrative.”
Price Action: At the time of writing, BTC was exchanging hands at $61,237.57, up 3.42% in the last 24 hours, according to data from Benzinga Pro.
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